Byju's Crisis: Karnataka Govt directs Edtech to pay dues to former employees

Karnataka Labour Minister Santosh Lad met with representatives of Think and Learn Pvt, the parent company of Byju's, on July 1 to address outstanding dues owed to former employees.

Moneycontrol reported that Lad instructed Byju's to settle at least 50% of the dues owed to former employees immediately, with the remaining 50% to be paid later.

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Byju's representatives informed Lad that their funds are currently in an escrow account with the National Company Law Tribunal or NCLT and that a hearing is scheduled for July 4.

They promised to update the labour department on their actions to clear the dues after the hearing.

Lad noted that around 160 to 200 employees had contacted the labour department, with total outstanding dues amounting to approximately Rs 4.5 crore. While some employees approached the department in person, most sent emails.

This issue adds to a series of challenges for Byju's, which is also dealing with disputes involving the Board of Control for Cricket in India, the Enforcement Directorate, the National Company Law Tribunal, and the Employees' Provident Fund Organisation.